Korea Eximbank Provides $150 Million in Financing for Korean Companies' Offshore Wind Project in Taiwan

On July 3, the Export-Import Bank of Korea (Korea Eximbank) announced that it will provide a total of $150 million (NT$4.5 billion) in project finance for the "Changhua 2 Offshore Wind Power Project" in Taiwan, in which five Korean offshore wind companies?including LS Cable & System, SK Oceanplant, and Taewoong?are participating.

The Changhua 2 Offshore Wind Power Project involves the construction and operation of an offshore wind farm with a total investment of $4.3 billion and an installed capacity of 624MW, located approximately 35 to 60 kilometers off the coast of Changhua County in central-western Taiwan.

This project is being promoted by the Taiwanese government to expand renewable energy as part of its "2050 Carbon Neutral Roadmap." The electricity produced will be sold for 20 years to Taiwan Power Company and TSMC under power purchase agreements.

To support the export of Korean offshore wind power equipment totaling $400 million, Korea Eximbank will provide $150 million in export credit guarantees for this project. The funds raised through Korea Eximbank's guarantees will be used to pay for offshore wind equipment exported by Korean companies.

A Korea Eximbank official stated, "Offshore wind power is emerging as a key energy source for achieving carbon neutrality," and added, "As the global market is expected to continue growing, it is essential to accumulate a track record to expand exports of Korean-made equipment."

The official continued, "Not only Taiwan but also Korea is actively promoting the expansion of offshore wind power to achieve carbon neutrality," and said, "Through policy finance support for domestic and overseas offshore wind projects, we will help Korean companies build their track records and, based on this, contribute to the industrialization of offshore wind equipment exports and expansion into overseas markets."